How implementing an enterprise resource management system can increase efficiency and lower costs

What tools are needed to implement enterprise resource management?

External tools and internal tools are necessary to successfully implement an enterprise resource management system. There are a multitude of software services available. Some of the more well known are SAP, Oracle, Epicore, Sage and Microsoft that generally run on industry-standard computing equipment.

The biggest resource that an enterprise resource management system needs is knowledgeable and dedicated management. It requires internal leadership to shepherd the implementation project, and it requires assistance from outside professionals to help with change management. The purchase and installation of the software is a minor component of the project. The major components are effective training and change management.

An enterprise resource management system impacts the entire organization; it changes the way employees perform their work. Information is stored differently, requiring employees to learn new processes in order to take advantage of the features that the solution offers.

How should an organization begin implementation?

Owners and executives would be wise to perform thorough due diligence before selecting an enterprise resource management system. They should begin by identifying the company’s current and future objectives and goals, and anticipated industry and economic changes that could impact the company. Next, they should apply these requirements to the latest software solutions available, relative to the company platform or capabilities, the company size and budget, and company industry.

Once a software solution has been decided, the owners and executives need to develop a project and change management plan to implement the solution. Generally, the implementation of an enterprise resource management system is a two- to three-year journey for middle-market companies.

Start with low expectations, define the must-haves for the first phase and then build on the success of that phase to expand the capabilities of the solution into various departments of the company

The approach that has proved very successful locally and around the world is a crawl, walk, run approach.

Sassan S. Hejazi, MIE, MBA, Ph.D, is director of the Technology Solutions Group at Kreischer Miller. Reach him at (215) 441-4600 or [email protected].